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  • Pramod Sandhadi

What are Annuities?

Annuities are financial products that provide a steady stream of income over a specified period of time. They are typically used as a form of retirement income or to provide a guaranteed source of income.

There are different types of annuities, including fixed annuities, variable annuities, and indexed annuities. Each type has its own features and benefits.

Fixed annuities offer a guaranteed interest rate for a specified period of time. This means that the income you receive from a fixed annuity will not fluctuate with market conditions. It provides a predictable and stable income stream.

Variable annuities, on the other hand, allow you to invest your premiums into various investment options such as stocks, bonds, or mutual funds. The income you receive from a variable annuity will depend on the performance of your chosen investments. This means that the income can fluctuate and may be higher or lower depending on market conditions.

Indexed annuities are a combination of both fixed and variable annuities. They offer a guaranteed minimum interest rate, similar to fixed annuities, but also provide the opportunity to earn additional interest based on the performance of a specific market index, such as the S&P 500.

Annuities can be purchased with a lump sum payment or through regular contributions over time. They can also offer various payout options, such as a fixed period or for the rest of your life.

It's important to carefully consider your financial goals and needs before purchasing an annuity. Our financial experts at Eternal Financials can work with you in understanding your goals and setting you up for success for the time when you need the money the most. Please schedule a no obligation call to discuss options that work best for you.



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